Ford expects sales to increase 50% by mid-decade to 8 million units a year
In a presentation today to financial analysts led by Ford President and CEO Alan Mulally, FoMoCo said that it expects its worldwide sales to go up by approximately 50 percent by mid-decade to 8 million vehicles on an annual basis. Ford will use its One Ford plan to accelerate product introductions and expand quickly in growth markets.
Ford said that it is well positioned to grow profitably and expects industry-wide vehicle sales to rise substantially by 2015.
“Ford is a growing company operating in a growing global automotive market,” Mulally said. “Through our One Ford plan, we are increasing our product investments to meet this growing demand with a full family of best-in-class products.”
By 2014, Ford said that more than 140 percent of the company’s global product portfolio will be new or significantly refreshed compared with 2009. Small vehicles are expected to represent about 55 percent of Ford’s total vehicle sales by 2020, with nearly one-third of sales in 2020 coming from Asia Pacific Africa due to significant growth.
Operating margins are expected to increase to 8 to 9 percent from 6.1 percent in 2010. North America operating margin at mid-decade is expected to be in the 8 percent to 10 percent range.
Ford will pay down an additional $2.3 billion of the term loans under its secured credit facility by the second quarter of 2011.
“We will continue to focus on maintaining healthy, growing operating margins and creating long-term value,” said Lewis Booth, Ford executive vice president and chief financial officer. “Maintaining adequate cash to support and grow the business and reducing our debt are essential steps we are taking to achieve and solidify a world-class balance sheet.”
– By: Omar Rana